Issues Under Fire: International Whispers Grow Louder Over U.S. Debt Ceiling Crisis

U.S. Worries the International Investor

As the markets hold and the American people remain relatively sedated, one has to wonder if international investors and leaders of major economies can intervene behind the scenes. With the United States signaling a scorched earth policy, global interest has to be able to isolate the economic carnage to America as much as  possible.

Missing from the APAC Summit, world leaders and investors whispered allowed their concerns over the U.S.' standoff with itself over its debt crisis. Sending second banana John Kerry was no match for the dominance China gained by just showing up. President Obama's absence left a void at the summit that was eagerly filled by China's Xi Jinping.

Comments from Japan's Finance Minister Taro Aso and Chinese officials indicate they're increasingly worried that the U.S. is dangerously close to jeopardizing trillions of dollars they've invested in U.S. Treasury bonds. "The U.S. must avoid a situation where it cannot pay (for its debt) and its triple-A ranking plunges all of a sudden," Aso told reporters following a cabinet meeting.

With China holding 1.28 trillion in U.S. Treasuries and Japan stuck with 1.14 trillion respectively, they must be nervous as hell watching the American fool fight. "The U.S. must be fully aware that if that happens the U.S. would fall into fiscal crisis," he said. And take the rest of the industrialized world along the the ride, one could add.

In fact, another huge question remains; what are other nations doing to protect their interest from  the United States' criminally negligent and haphazard handling of the world's economic future? Surly contingency plans must be in place to mitigate the damage to economic bystanders dependent upon the U.S. getting its act together.

For others to stand idly by and watch the United States bitch and bicker over defunding healthcare ( something all developed industrialized nations provide) in order to be able to pay its bills would be as foolhardy.

Are international investors quietly considering alternative safe havens for investments since the United States is determined to prove its not as safe as it once was? Only time will tell. the good news is we don't have that much longer before we all find out.